Prepared for tax season?

Area accountants, others ready to help confused filers

Area accountants, others ready to help confused filers

January 17, 2008|By Emily Arthur-Richardt, earthur@aberdeennews.com

While several stacks of files and paperwork sit on Sally Waltman's desk, it's one in particular she has her eye on. Waltman, a tax preparer at H&R Block in Aberdeen, grabs the stack, and heads to an open computer. “I definitely have some things that need to be done,” she said with a little chuckle. “There's always something that needs to be entered.” Welcome to tax season, where large returns are wished for and accountants try to deliver. Filers have until April 15, the deadline, to file their 2007 tax returns. And accountants and tax preparers have until then to try to fit everyone in. “We're busy already,” said Gerri Kippley, owner of H&R Block in Aberdeen. “As soon as people start getting their W-2s, they're coming through the door.” And it will stay that way, said Wendy Guthmiller, owner of Guthmiller Accounting in Aberdeen. “It's always good to file early,” Guthmiller said. “We're putting in 60-hour weeks starting now. It's probably better to get us when we're fresh.” It's also a good idea to file electronically, officials said. Last year, nearly 80 million tax returns were e-filed, representing about 57 percent of all returns, according to the Internal Revenue Service. In South Dakota, about 61 percent - nearly 229,000 - were e-filed. Kippley said the difference between filing online and using paper copies is generally the time it takes to get the refund. Electronically filing and using direct deposit will take about eight to 15 days, she said. “A lot of people do that,” Kippley said. “They get it back faster, and they don't have to worry about losing a check.” It will take about three to four weeks if the filer wants a check to be sent, she said. And it can take up to six weeks if filing through the mail. While Kippley and Guthmiller encourage filers to go to an accountant and tax preparer to get their taxes done, they admit it's not always necessary. If a person - such as a college student or someone who is single and filing their taxes by him or herself - doesn't have a lot of deductions and paperwork to go through, using an online program isn't a bad option, Kippley said. She said it's important the filer saves a copy of the return when it's finished, though. Guthmiller agreed, but said it's important to ask questions when the answer isn't clear. “I've helped a few clients through programs like TurboTax,” she said. “The questions are pretty detailed. They ask the same ones we do. The confusion comes with the client. Sometimes they're not sure how to answer it. If you're not sure on those questions, you need to ask somebody who has the knowledge to get through those.” While the majority of taxpayers can file as soon as they have the necessary paperwork to do so, some will have to wait until Feb. 11, according to the IRS. Because of Alternative Minimum Tax legislation, which will change the way what filers have to pay into the system is figured, five forms related to the new legislation have been delayed. The alternative minimum tax is scheduled to go into effect next year, unless Congress delays the date again. The forms filers will have to wait for include:

Form 8863 - education credits.

Form 5695 - residential energy credits.

Schedule 2, Form 1040A - child and dependent care expenses.

Form 8396 - mortgage interest credit.

Form 8859 - District of Columbia first-time homebuyer credit. If filers have any questions about when to file or when not to file, it's always better to ask, Guthmiller said. For more information on filing taxes, check out IRS.gov.